The Impact Of Internet Marketing

The Impact Of lucre trade net market is withal known as digital trade, blade merchandise, online market, or e-marketing. As the name states, it is the advertising of products or services over the meshing. However, it also implies marketing through the wire slight media and through e-mail. electronic customer affinity Management (E-CRM) systems are also categorized under net income marketing. IM can be creative, as well as, technical through its design, development, advertising, and gross revenue over the profit.In the past ten years, the Internet population varied a lot (Sandelands, 1997) an estimation of ab out 50 percent increase of the World Wide meshing (WWW) per month and the numbers of websites double every 53 days (Gilbert, Perry and Widijoso, 1999). A 60 percent of tumescent companies and 30 percent of midsize companies were estimated to make spend of the Internet for marketing purposes by the year 2000 (Crain, 1994). In 2003, the first generation of cyberspac e users was fresh graduates fast to get the concepts of online commerce and shopping.The WWW is an electronic technology which is an utile means for marketing hotels and it also develops guest relationship in the long-run (Gilbert, Perry and Widijoso, 1999). The Internet allows firms to open a Web site in an electronic mall, induce their products available to millions of emf customers and only in a short time period. GE, IBM, Ford, Kraft, and Proctor Gamble were the first to register domain names (Herbig and Hale, 1997).Because Internet grew in only five years (Lagrosen, 2005) and there are no barriers for time or location, profits marketing has become the new era in E-commerce with little variable cost per customer (Deighton, 1997). Marketers use full color advertising that appeal similar to both -young and old- to attract people all over the world. The Internet is now considered as a a good deal greater resource than traditional means of marketing (Herbig and Hale, 1997). All industries lay down subject matter experts (SMEs) (Marquis, 2001) who are responsible to unify and leave knowledge from diametric vendors and sources to solve industry problems. To prepare a Web site merging SME knowledge with other reference sources is wiz of example of Internet model, (Strauss and freezing, 1999), to retain and attract customers (Heinen, 1996). A well designed Web site can lead to an interesting, low cost means for sales promotion to worldwide customers (Hamill, 1997). Marketers should also refer to the AIDA model-Attention, Interest, Desire and Action- to successfully attract customers by introducing the right marketing on Internet (Lagrosen, 2005).2. Objective of StudyThe conclude objective of the research is to assess the contri howeverion of internet marketing on soundness of marketing and customer relationship management operations in precise reference to Indian organizations and Multi National Corporations (MNCs) operating in India. In the ligh t of the above, the research attempts to shit the following specific objectives1 To take apart the impact of internet marketing in attracting buyers to the websites/organizations.2 To study the impact of internet marketing in retaining buyers of the websites/organizations.3 To study the impact of internet marketing in maintaining customer loyalty towards the websites/organizations.4 To study the impact of internet marketing in providing brand mystify to the customers of the websites/organizations.5 To study the impact of internet marketing in maintaining CRM for the customers of the websites/organizations.3. Scope of Study its LimitationsThe proposed study would include selected organizations in India, which have used internet marketing for enhancing effectiveness of marketing operations. The impact of internet marketing on attracting buyers, retaining buyers, maintaining customer loyalty, providing brand experience and maintaining CRM would be assessed through structured resear ch techniques.There are some limiting factors that can be called inherent in a research of this nature. These factors advise the following precautions to be observed in understanding and comparing the results.1. The entire population of the organizations will not be cover under the study. An attempt to study the nature of the population through the limited sample will be made. All the limitations of a sample study shall apply to this research.2. The prys will be sampled from literature, but the problems of re reconcileative sample of such values may remain unresolved.3. The assessment of relative impact of internet marketing is not wholly objective. Evidently, the research would provide rather inadequate basis for generalization about the entire organizational world.4. The methodology for identification, grouping and measuring of several(prenominal) variables is only one of the different possibilities and is not a perfect one. As such, in an explorative study on assessment of relat ive impact of internet marketing, these weaknesses are unavoidable and one will have to use the findings with ones maturity and insight to arrive at logical conclusions.5. The findings of the study may be judge to hold good for top-level and middle-level executives involved in internet marketing in India.4. HypothesisThe basic hypothesis of the study is that internet marketing positively affects marketing operations. Some of the specific hypotheses are listed below1 Higher attraction of customers is positively correlated with impost of internet marketing.2 Higher safekeeping of customers is positively correlated with usage of internet marketing.3 Higher loyalty of customers is positively correlated with usage of internet marketing.4 Better brand experience of customers is positively correlated with usage internet marketing.5 Better Customer human relationship Management (CRM) is positively correlated with usage of internet marketing.5. explore methodologyThe proposed study is to assess the impact of internet marketing on effectiveness of marketing operations. The carrying into action of the organizations, which have adopted internet marketing, will be compared against functioning of the same organizations, when internet marketing was not in practice.The sternbone of this research is to establish and sustain a clear link betwixt conceptual simulation and existential analysis. The main splendor of this consideration comes from the belief that unless the conceptual framework and empirical study are highly unified, from each one one of them individually would present a partitioned and distorted image of the research points. For that this study will depend onConceptual framework depending mostly on the secondary data.Empirical study depending mostly on the primary data.A combined research strategy based on survey and secondary will be carried out in the research by using structured questionnaires and interviews as a primary data collection methods. S uitable statistical techniques like Weighted Mean abridgment and Chi Square Test would be used to analyze the collected data and the conclusions would be drawn for making the recommendations.The proposed study is intended to be carried out for Indian organizations and MNCs operating in this country. The data for the study will be mainly generated through structured questionnaires to be filled up by different managerial personnel and secondary data (research reports) would also be used, wherever necessary.6. Review of LiteratureThe Internet plays an important role in many companies marketing communicating strategies, accounting for $18.5 billion in total spending in 2005. Online advertising now ranges from directory listings of the early days to the much novel multimedia ads enabled by video streaming. Although online advertising technology has advanced to a great extent, consumers reaction toward online advertising did not improve over the years. To the contrary, banner ad click- through rates have steadily declined. Some officious online advertising formats have stimulated intense detrimental reactions from consumers (Edwards, Li and Lee, 2002).Despite its start as an interactional advertising format that should draw consumers, online advertising now faces the danger of becoming another push media and being rejected by consumers as with traditional advertising.These developments run against the trend of interconnected marketing communications (IMC). IMC purports the coordination of marketing activities to form a purposeful dialogue with stakeholders (Duncan 2002), which implies the participation of consumers and a need to take consumer preferences into consideration. As a result, two-way synergistic communication with consumers should be at the center of marketing communication efforts (Duncan and Moriaty, 1998). The same thinking is reflected in relationship marketing, which treats consumers as a partner in the marketing process and advocates a much intimate approach to marketing (Vargo and Lusch, 2004). This suggests that, for advertising to be truly effective to todays more wary and demanding consumers, it needs to put consumers back into the equation and empower them while getting the message across. This issue is especially critical to online advertising, as it is considered the most interactive form of advertising and has the potential of leadership the advertising industry toward the right direction.While traditional marketing strategies focus mostly on conveying information to consumers and persuading consumers, recent theories argue for a much more active and powerful role of consumers in marketing (Stewart and Pavlou, 2002, Vargo and Lusch, 2004). Consumers are no longer just receivers at one end of the communication continuum but instead actively participate in the marketing process, including the development and distribution of advertisements. As a result, consumers co-construct the meaning of marketing messages an d develop a more effective personal relationship with companies. Reflecting this line of thinking, Duncan and Moriaty (1998) argue that the key to communicating effectively with consumers is a two-way exchange built on balance, symmetry, and reciprocity. This calls for attention to consumers needs and preferences in marketing communication. It advocates building long-term relationship with consumers at their willingness rather than pushing products to consumers to create near-term sales.Evidence of the need to attend to consumers needs and preferences can be gleaned from research on the general attitude toward advertising and advertising avoidance. Studies in these areas show that advertising forms that are forced onto consumers without regard to their choices are generally received negatively (Shavitt, Vargas and Lowrey, 2004). Ads in such forms are more likely to be avoided (Speck and Elliott, 1997) and tend to have adverse effects on brand recall and subsequent attitudes (Mehta, 2000). These negative effects have been attributed to the intrusiveness of ad exposure, the disruption of normal communication, and the ensuing annoyance (Shavitt, Vargas and Lowrey, 2004, Speck and Elliott, 1997). Supporting these academic findings, the advertising industry has witnessed in recent years the steady decline of dependence on TV commercials, an advertising form that has been consistently rated as the most negative by consumers due to its intrusive and pushy nature (Mittal, 1994, Shavitt, Vargas and Lowrey, 2004). Advertisers are now resorting to much softer approaches such as product placement in TV programs and are shifting their focus to less offensive media such as print media and the Internet. Taken together, academic and industry evidences both point to a need to incorporate consumers communication preferences into advertising.As a newly emerged advertising medium, the Internet has the most potential for incorporating consumer preferences into the advertising pro cess and overcoming the negative denotation that comes with traditional media advertising. It is an interactive medium that allows two-way communication between consumers and advertizers (Hoffman and Novak, 1996). With a diverse set of online advertising tools, advertisers can engage in effective multi-stage communication with consumers. For example, with the initial help of banner ads or search locomotive locomotive engine listings, companies can pull interested consumers to their websites for rich product information and immersive brand experience. The use of online communities can further deepen consumers identification and relationship with the brand. At each step of the process, consumers can actively participate by offering feedback to companies and by controlling the information they receive. Some online advertising formats, such as search engine advertising, deliver highly targeted advertising messages to consumers right when they need the information. All of this contri butes to potentially better understanding and incorporation of consumer needs and preferences, which should lead to more effective marketing communication.The same characteristics of the Internet media also present unique challenges to advertisers. The interactive capability of the Internet endows consumers with more control. As a result, they tend to be more demanding and to be less tolerant of forced communication from advertisers. The more goal-oriented and high-involvement nature of Internet media use also means that disruption by advertisements will create more annoyance among consumers. Since some online advertising formats such as interstitials force consumers to deviate from their main goals to respond to the ads, they have been found to create reactance among consumers and to lead to negative perceptions of the advertiser and the advertised products (Edwards, Li and Lee, 2002).This equivocal nature of interactive communication is reflected in the interactivity literature. A lthough some existing studies have found interactive ads to be more persuasive than non-interactive ads (e.g., Fortin and Dholakia, 2005, Sundar, Kalyanaraman and Brown, 2003), other studies have revealed no or even negative effects of interactivity on persuasion (e.g., Bezjian-Avery, Calder and Iacobucci, 1998, Coyle and Thorson, 2001, Lohtia, Donthu and Hershberger, 2003). Consequently, researchers have pointed out that interactivity may not be profitable across all consumers and/or all lines (Liu and Shrum, 2002). These conflicting findings show the intricacies of interactive communication and a need to consider how individual consumers may react to interactive advertising messages differently according to their own needs.The key consideration for an online advertiser is to maximize the benefits of the self-selected and interactive nature of the online media, and in the meantime avoid offensive and overly interactive advertising messages to consumers who do not want to interac t. The first step toward this direction is to understand how much consumers are willing to use the Internet in an interactive fashion (rather than as a passive information source as with traditional media) and what drives their desire to do so.In academic research, comprehend value is an important component of the Technology Acceptance Model proposed by Davis, Bagozzi and Warshaw (1989) found that perceived usefulness is the most important predictor of peoples intention to use a new information technology, and this finding has been replicated in various other settings, including consumers adoption of online tools and consumers intention to shop at an online store (Gentry and Calantone, 2002, Koufaris, 2002). Within the arena of dyadic communication and relationships, value perception is considered a key contributor to the decision to engage in interactive relationship-oriented behavior. Sheth and Parvatiyar (1995), for example, proposed that consumers are more prone to engage in r elative market behavior if the behavior brings values such as efficiency and risk reduction. In an online environment, Ko, Cho, and Roberts (2005) found that consumers needs for convenience and social interaction and the perceived ability of the Internet to fulfill such needs have a positive impact on consumers interaction intentions.While perceived value is a motivator of online interaction, perceived risk can deter a consumer from interacting online. Following Stone and Gronhaug (1993), perceived risk is defined as subjective expectations of loss as a result of interacting online.Research on traditional communication demonstrates a link between perceived risk and an individuals willingness to interact. When individuals perceive a certain situation to be uncertain and risky, they are likely to withdraw socially and exhibit a reluctance to engage in interaction (McCroskey, 1984, Neuliep and Ryan, 1998). Risk is a of import topic to online marketing (Olivero and Lunt, 2004). On the Internet, face-to-face communication is replaced with screen-to-face communication. This virtual nature of the Internet brings uncertainty and risk to online communication and may prevent consumers from interacting more online. For example, an advertiser may attempt to elicit interaction from a consumer by sending a promotional telecommunicate linking to additional information. But if the consumer perceives clicking on such email links as risky, he or she is unlikely to take the further step even if there is some interest in the product. Indeed, studies by industry, government, and academic researchers all recognize perceived risk as a big obstacle to the expansion of e-commerce (Federal Trade Federal Trade Commission, 2000, Grabner-Kraeuter, 2002, Miyazaki and Fernandez, 2001, Olivero and Lunt, 2004).The research has shown that the degree of an individuals secrecy and security concerns vary with the individuals education (Burke, 2002), Internet experience (Miyazaki and Fernandez, 2001), and his or her general propensity to trust (Lee and Turban, 2001, Uslaner, 2000). The different degrees of concern can lead to variations in perceived risk and thus lead to different levels of willingness to engage in online interaction.Time-pressedness refers to a consumers general lack of time in completing the tasks in daily life. lack of time is a common syndrome of todays fast-paced lifestyle. This time-pressedness, felt to different degrees by different consumers, can have a double-edged effect on consumers usage of the Internet. Consumers may use the Internet more because of its timesaving benefits (Alba, Lynch, Weitz, Janiszewski, Lutz, Sawyer and Wood, 1997). For example, instead of consulting daily newspaper and TV for availability of products and services, consumers can quickly research a large assortment of products on the Internet. The constant availability of the Internet also appeals to consumers with a tight schedule. However, two-way communication is highly engaging and time-consuming (Liu and Shrum, 2002).In studies of interactivity, researchers have demonstrated that the reanimate of a communication constitutes an important dimension of how interactive the communication is. A more synchronized communication leads to higher satisfaction and more positive attitude toward the communication target (Liu and Shrum, 2002). Industry research shows that consumers who have a faster broadband Internet connection engage in a wider variety of activities than consumers with regular dial-up connections (Horrigan, 2003). Some of these activities, such as email and online chatting, are especially communication-oriented. Such differences between broadband and dial-up Internet users can be attributed part to the fact that a constant-on broadband connection provides greater convenience than a dial-up connection. Not only does it provide the consumer more opportunities to interact online, its high connection speed also allows richer communication form ats such as voice chatting and rich media advertising. This makes the Internet a better choice for substituting or complementing other communication impart (Daft and Lengel, 1986).7. Chapterization SchemeChapter 01 IntroductionThe first chapter of the proposed research would be devoted to the history of internet marketing and would review the transformation of marketing from traditional to customer centrical internet marketing. In particular, this chapter would discuss various possible contributions of internet marketing towards fulfillment of strategic goals of organizations with special reference to India. This chapter would work up the research plan and objectives. This chapter would also outline the hypotheses and conclusions.Chapter 02 Research MethodologyThis chapter of the proposed research would be devoted to establish and sustain a clear link between conceptual framework and empirical analysis. There would be special emphasis on integrating conceptual framework with empiri cal study. The research tools, data collection tools, data analysis tools would be elaborated in this chapter. The sample size, sampling method and justification for usage in research would also be elaborated.Chapter 03 Attraction and Retention of CustomersThis chapter of the proposed research would cross out between Business-to-Business (B2B) and Business-to-Consumer (B2C) marketplaces. This chapter would further describe how and why customers purchase online and why consumers are attracted to particular suppliers. Online and off-line customers would be compared in order to understand reasons for observed differences. non-homogeneous antecedents of the online experience would be addressed to determine influences on satisfaction and buying behavior. Web site efficacy (usefulness and ease-of-use) would be addressed in light of its importance in customer satisfaction and retention for online shopping. The chapter would conclude with insights for internet marketers to attract new buy ers, satisfy, and retain them.Chapter 04 Customer LoyaltyThis chapter of the proposed research would discuss the importance of an integrated framework for understanding the impact of corporate image, customer trust, and customer value on e-customer loyalty in a B2C e-commerce context. This framework would incorporate cognitive and emotive components in order to gain customer mind share, nurture emotional ties, and influence future purchase decisions.Chapter 05 Brand ExperienceThis chapter of the proposed research would make a case for the importance of branding efforts by reviewing major approaches to brand development in both offlineand online marketing environments. The concept of Interactive Brand Experiences (IBE) would be created and explored via the use of marketing tools, such as personalization, co-creation, purchase-process streamlining, self-service, brand community, rich media, product self-design, dynamic pricing, and customization. This chapter would deal with two major challenges involved in integrating branding efforts in online and off-line spaces (1) identifying the appropriate techniques and the media best suited to deliver them and (2) executing seamlessly at all touch points in the process.Chapter 06 Customer Relationship Management (CRM)This chapter of the proposed research would elaborate how the Internet has emerged as a powerful electronic customer relationship management tool. This chapter would emphasize that this tool is of practical use only when consumers are willing to provide the type of information that is of value to the internet marketer. Consumer willingness to provide personal information is a cornerstone of customer relationship management. This chapter would explore how consumers self-confidence in using the Internet impacts their willingness to provide personal information online.Chapter 07 Analysis and Interpretation of DataThis chapter of the proposed research would analyze the collected data and would also interpret th e findings by and by application of statistical tools.Chapter 08 Summary of Findings, Conclusions, Limitations and Further Scope of ResearchThis final chapter of the proposed research would summarize findings, draw conclusions and elaborate on limitations of the proposed research. This chapter would present a futuristic look at internet marketing in the decades to come through future research. In particular, this chapter would highlight the needs of organizations towards adoption of internet marketing in congruence with business strategies. 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